Taxation in the form of tax card consists in the payment of a fixed amount of the tax irrespective of the value of actual revenues.
Who can settle income in the form of a tax card
Possibility of settling by a tax card is limited to very specific types of activities listed in one of the 12 parts of the table — Annex to the Act on lump sum income tax on selected revenues received by natural persons (mainly crafts) contained in the Act on lump sum income tax, subject to fulfilment of additional conditions. In order to settle on the basis of a card, you must:
- maintain the limit of employment (e.g. vulcaniser who settles in the form of tax card may employ up to three persons). Check the limits for particular types of services.
but you cannot:
- use the services of persons not employed by you on the basis of employment contract and the services of other entrepreneurs and establishments, except for specialised services (i.e. activities and works in other than the notified activities, required to fully implement the device or service provided, including activities and additional works),
- conduct other non-agricultural economic activity,
- manufacture products subject to excise duty, on the basis of separate provisions,
In addition, your spouse cannot conduct activity in the same field.
Notification of taxation in the form of a tax card must be effected not later than by 20 January on PIT-16 form.
If the taxable person starts activity, a request to apply taxation in the form of a tax card shall be submitted to the head of the competent tax office prior to the start of activity, or may attach such a statement to the application for entry in CEIDG.
Upon receipt of PIT-16 tax return, the tax authority shall, by decision, set the amount of the tax and deadline for payment in a given year. Income tax established in this form after the deduction of the contribution for health insurance, shall be paid to the account of the tax office by the seventh day of each month for the previous month, and for December by 28 December of the tax year.
In the case of settlement in the form of a tax card, there is no possibility of quarterly payments of income tax.
After the end of the tax year, by the 31 January, the taxable person is required to submit an annual return on PIT-16A form. The tax will be reduced, in the first place, by the amount of health insurance contributions paid.
If changes occur regarding the data that you entered in the PIT-16 application or you liquidate business activity, you should submit an application. You submit information on amendment in the application for a tax card or liquidation of activity on PIT-16Z form.
The tax rates
The rate of tax card shall be monetised and subject to an annual increase in accordance with the price index for consumer goods and services during the first three quarters of the year preceding the tax year in relation to the same period of the previous year.
These tax rates shall be determined by, among other things:
- the nature and scope of the activity,
- number of employees
- the population of the locality in which the economic activity is carried out.
The amount of the rates in force in 2016 can be found in the Notice of the Minister of Finance of 22 October 2015 on the rates of tax card.
The rates for 2017 are contained in the Notice of 24 October 2016, on the rate of tax card.
Record keeping obligation
Taxable persons carrying out taxable activity in the form of a tax card are exempt from the obligation of bookkeeping, submitting tax returns and making advance income tax payments.
However, those taxable persons are obliged to issue invoices at the request of a customer, referred to in separate provisions, stating the sale of the product, goods or provision of service and keep in order of the numbers copies of bills and invoices during the five tax years, counting from the end of the year in which the invoice was issued. They are also obliged to keep records of employment in the entity, according to the agreed formula. See Regulation of the Minister of Finance of 17 December 2002 on card of revenues.
Examples of activities taxed in the form of a tax card
Check information on the taxation of some types of activities in the form of a tax card:
- Retail trade in foodstuffs subject to tax in the form of a tax card
- Retail trade in non-food products taxed in the form of a tax card
- Catering services taxed in the form of a tax card
- Medical and veterinary services taxed in the form of a tax card
- Transport services taxed in the form of a tax card
- Entertainment services taxed in the form of a tax card
- Tutoring taxed in the form of a tax card
- Other services and manufacturing taxed in the form of a tax card